China’s steel mills are shifting to greener production processes which don’t favour Australian iron ore. Australian miners must quickly adapt or get left behind.
Sally Innis, University of British Columbia; Benjamin Cox, University of British Columbia; John Steen, University of British Columbia y Nadja Kunz, University of British Columbia
Simple economic modelling shows the mining industry would benefit from a carbon tax.
Australia’s abundant wind and solar resources mean we’re well placed to produce the hydrogen a green steel industry needs. But there are technical and economic challenges ahead.
To cut enough greenhouse gas emissions, the world will need technologies that are still being developed, particularly for industries that are tough to clean up, like cement, steel and shipping.
Building renewable energy infrastructure involves mining for materials such as lithium, graphite and cobalt. If not done responsibly, that could cause huge environmental damage.
Europe recycles 70% of its steel, but much is exported, turning what should be a circular process into a linear one. Instead, materials need to be circularity-ready the moment they’re manufactured.
Far from being wiped off the map as was once predicted, Whyalla is coming back in an unlikely way, as potentially Australia’s biggest steel producer powered almost entirely by renewable energy.